foreclosure

A number of reports were released this week about distressed home sales. In large part they show that the number of traditional sales are increasing, thereby decreasing the percentages of short sales and foreclosures (REO) being sold. The infographic below shows the Grundy County breakdown for the last year.

38.6% of sales in the last year in Grundy County were distressed.

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Will County has homes for sale. Lots. Taking a look at the non-new construction homes available (resales, or existing homes), this is the breakdown we see. Of 3,502 properties available,  60.37% are traditional sales, 12.99% are foreclosures and 26.64% are short sales.  That means about 60% (or 3 out of every 5 properties) of the market is traditional and 40% is distressed. Of course, real estate is local guy says not to necessarily think that’s where you’re at. More on this tomorrow!

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No one will say that the rash of short sales and foreclosures the last 5ish years have left banks in better situations than they were prior. One must, however, wonder just how much the banks shoot themselves in the foot.

Find a real estate agent and he or she will have plenty of tales of slam dunk short sales that banks have blown by lack of caring to get a deal done.

How bout this one:
I had a client in dire need of a new, bigger, living arrangement. I had done too good of a a decent job in  listing their property and getting it under contract. They found a foreclosure that they wanted and we made a contingent on close offer. (SIDEBAR: a contingent on close offer means that my

I sold for about 19% less than I could have!

clients had a buyer for their house and just needed to close on the house. This is different than a contingent on sale in which my folks would have still been searching for that buyer). They didn’t want to be homeless, so they made an offer significantly higher than list price of $189,900. How much higher? All the way to about the max that we thought the house was worth……$235,000!

It closed on 5/20/13 for $191,000 (100.6% of list price). Not a bad deal. Under contract quickly (16 days), closed relatively soon, sold for over list price. But when one factors into the equation that it left an offer of $235,000 from highly qualified buyers on the table, it must be reevaluated.  They COULD HAVE closed one month later for 127% of list price and brought into their institution of banking $44,000 extra dollars. Sure there was risk involved. My buyers’ buyers’ could have walked leaving us to back out of the contract. But where’s the harm, really? They would have just sold the house right away as soon as it came back on the market.

What do you think of this?

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Zombie Title

by Jim Ludes on January 10, 2013

in Real Estate News


Beware the Florida Zombie Title?

Check out this story in the financial post of a zombie title on a foreclosed property in Florida. What do you think of this? Never heard of such a situation.

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Realtor Magazine had a blurb about two weeks ago about foreclosures stalling housing recovery.

DUH!

The article (linked above) contends that, “U.S. home prices may fall further under the weight of foreclosures, bouncing back no sooner than 2013 even with mortgage rates at historic lows.”

A couple blocks from me, homes that sold in the 230-250s a few years ago are selling in the 190-200 range. Foreclosure comps are coming in as low as 140s! What a mess. Hopefully, however, once the ship is righted, everyone learns from mistakes and does not repeat!

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Ask the REALTOR

by Jim Ludes on July 6, 2011

in Ask the REALTOR

Finally, someone has asked a question and sparked some (hopefully) conversation in the blogosphere here.

Amy K. wants to know:

So here’s my question: Where are the people that ARE selling their houses going? Apparently, they aren’t buying another home, right? Is the number of people renting taking a big upswing? Or is everyone moving back in with mom and dad?!

Where are people that are selling their houses going? I think it depends on the type of seller. Many, many many of our sales are short sales or foreclosures. In either of those situations, the ‘seller’ will not be approved for a loan to purchase, so they DO go rent or live with someone.  Of those selling the home because they WANT to sell it (not out of need), I’d say a high majority ARE purchasing elsewhere. There’ll always be some amount of sellers that don’t purchase (retirees, other elderly, etc.). I went back and checked my last 10 listings to close: 2 purchased elsewhere (one out-of-state and one in a retirement community)…that’s only 20%. The other 80% (eight) sellers were: 2 foreclosures, 3 deceased, an elderly move-in with children, an elderly move into the nursing home and one divorce situation where each rented. This never dawned on me until you asked, by the way (how much death and sadness I deal with just while doing my job). And a quick answer to the rental- oh yeah, that’s on the upswing.

“Who IS buying homes and what is being done, in general, to reach out to that collective group of people?” Right now, not enough of anyone is buying (thanks, Captain Obvious). Those buying now appear to be those ready to capitalize on a great move-up deal. Renters/ first time buyers and people moving out of starter houses into larger homes would be the two obvious answers. Trouble is, that with economic uncertainty and no guarantee that real estate’s hit the bottom, many folks (even the ones who CAN buy) are afraid that their new purchase will start to devalue immediately, akin to when you drive your new car off the lot. The sad (for some) fact is that the truly wealthy are out there scooping up gobs and gobs of real estate. Like buying a stock low, it will come back up and they will sell it for profit. As far as reaching out to people? I’ve been doing it for three years, letting them know it’s the PERFECT time to sell and move up or buy for the first time. In fact, many of us (probably all) will never see a time better to buy in our lifetime. The National Association of Realtors has been running radio and television spots for that long preaching it too. I’m not sure if there’s anything that can be done to convince people to buy other than economic stability.

“Is there someplace in the country where homes ARE actually selling?” To be technical, homes ARE selling in Grundy and Will County, IL. Good homes at right prices are still selling. As far as national numbers, I’m no expert. Real estate is local, and I make it my business to be an expert on the sales in my region. I get the rest from news and articles just like any consumer would.  I think tomorrow I should take a peek at counties NOT Grundy and Will and see how they stack up!

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REO Nightmares

April 22, 2011

I’ve got a client with an offer in on a foreclosure (REO) house in Downers Grove. I haven’t heard from the listing agent despite my calls and emails since the wee hours on Friday night. This is how I feel today (not my video but one I admire). I’ll have a serious post in the future [...]

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Short Sales and Foreclosures

March 2, 2011

Lately folks have begun to ask me a lot about short sales and foreclosures. Not that it’s an uncommon query, I’m just getting it more frequently. I thought I’d update everyone on how many are selling and where. Below you will see how many are selling and where over the last 6 months. You’ll note the town, [...]

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Foreclosure Takes a Holiday

December 6, 2010

Foreclosures through Fannie Mae and Freddie Mac will take a break from December 20, 2010 to January 3, 2011 as I read on CNN Money this morning. I don’t know if the eviction on January 4th is any easier to handle….but I guess it beats Christmas on the Streets.

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